Veterans are more likely to have emergency funds and retirement plans, less difficulty covering expenses and bills and a lower likelihood of experiencing an income drop than they were five years ago, according to research released today by the Finra Investor Education Foundation.
Veterans also report higher financial well-being, lower levels of financial anxiety and a greater propensity to use financial technology, according to the white paper “How are Veterans Faring Financially?
“The financial capability of both veterans and adult Americans in general improved between 2015 and 2018, though veterans appear to have improved at a somewhat faster rate,” Finra reported.
Not all veterans were doing as well as all others, however, as the Finra white paper noted some within the veteran community, including many women, are encountering challenges. The report also found that there has been a drop in the number of veterans attending four-year colleges over the past five years, and in increase in veterans forgoing medical treatment.
The white paper found that veterans in 2018 are generally faring better than non-veterans in a number of critical financial areas, as well as doing better than veterans did in a 2015 Finra survey.
Relative to 2015 veterans, Finra reported veterans in 2018 saw improvement in the following areas:
• 5% more likely to have an emergency fund.
• 7% more likely to have retirement savings outside an employer plan.
• 5% more likely to have savings in non-retirement accounts.
• 15% less likely to have difficulty covering bills and expenses.
• 15% less likely to have experienced a drop in income in the past 12 months.
Overall, veterans report higher financial well-being, lower levels of financial anxiety, and a higher likelihood of having a will, the paper said.
Veterans in 2018 are also 12% more likely to use financial technology for planning than non-veterans and are 33% more likely to participate in the gig economy, Finra said.
When individual groups within the veteran community were examined, however, Finra found an uneven picture.
Veterans who are female, younger, married, divorced or separated, or who have financial dependents, are faring worse than their veteran peers, the white paper said.